Alberta
Japan PM sees LNG Canada as a ‘flagship’ facility to help improve world energy security while lowering emissions
Prime Minister of Japan Fumio Kishida speaks during the G7 summit at Schloss Elmau, Germany on June 26, 2022 as (L-R) Canadian Prime Minister Justin Trudeau and German Chancellor Olaf Schulz look on. Getty Images photo
From the Canadian Energy Centre Ltd.
Kishida is expected to ask for Canadian LNG as the country looks to replace Russian gas supplies
Japanese Prime Minister Fumio Kishida sees the LNG Canada terminal under construction at Kitimat, B.C. as a “flagship” facility, he said in remarks Jan. 12 during a visit to Ottawa to meet with Prime Minster Justin Trudeau.
“LNG will indeed play a crucial role in striking a balance between energy security and decarbonization,” he said.
“LNG Canada is a flagship project making maximum use of the latest technologies of Japanese companies.”
Resource-poor Japan is the world’s largest LNG consumer, using the fuel to generate electricity, power industry, and heat homes and businesses. Qatar is one of Japan’s largest LNG suppliers.
Kishida is expected to ask for Canadian LNG as the country looks to replace Russian gas supplies. Japan, a relatively short distance from the LNG Canada project compared to terminals on the U.S. Gulf Coast, imported nearly 75 million tonnes of LNG in 2020 – worth over $30 billion.
Kishida’s visit comes just months after German Chancellor Olaf Scholz visited Ottawa also seeking Canadian LNG. Prime Minister Trudeau questioned the business case for shipping Canadian LNG to Europe.
Germany, moving swiftly to reduce reliance on natural gas flows from Russia, built an LNG import facility in just 194 days and recently received its first shipment from the U.S. It also signed an agreement with Qatar to receive 2 million tonnes of LNG per year for 15 years starting in 2026. Germany will open a second LNG import terminal in January.
While Canadian LNG can help alleviate the challenge in Europe, the larger long-term opportunity is in Asia, according to energy consultancy Wood Mackenzie.
Module delivery, LNG Canada site, Kitimat, B.C., July 2022. Photo courtesy LNG Canada
“For Asian buyers, Canadian LNG is quite cost competitive due to its relatively low shipping and liquefaction costs compared to other global exporters,” says Dulles Wang, Wood Mackenzie’s director of Americas gas and LNG research.
As of July 2022, Japan had 92 operating coal plants, 6 under construction and 1 in pre-construction, says Global Energy Monitor. Construction of new coal-fired power plants is occurring mostly in Asia, with China accounting for 52 per cent of the 176 gigawatts of coal capacity being built in 20 countries in 2021, says a New Scientist report.
“If Canada increases its LNG export capacity to Asia, net emissions could decline by 188 million tonnes of CO2 equivalent per year through 2050 – or the impact every year of taking 41 million cars off the road,” according to Wood Mackenzie analysis.
Asia drives 67 per cent of global LNG demand today, and that share is expected to grow to 73 per cent by 2050 as world consumption doubles to 700 million tonnes per year.
“Starting in 2027, we see there’s going to be a global supply/demand gap that is probably going to grow to 120 million tonnes per annum and about 150 million tonnes per annum by 2035,” says Matthias Bloennigen, Wood Mackenzie’s director of Americas upstream consulting.
“Developing western Canadian LNG would be helpful to alleviate the LNG demand that’s going to develop in the world.”
The unaltered reproduction of this content is free of charge with attribution to Canadian Energy Centre Ltd.
Alberta
Pierre Poilievre will run to represent Camrose, Stettler, Hanna, and Drumheller in Central Alberta by-election
From LifeSiteNews
Conservative MP-elect Damien Kurek announced Friday he would be willing to give up his seat as an MP so Pierre Poilievre, who lost his seat Monday, could attempt to re-join Parliament.
Conservative MP-elect Damien Kurek announced Friday he would be willing to give up his seat in a riding that saw the Conservatives easily defeat the Liberals by 46,020 votes in this past Monday’s election. Poilievre had lost his seat to his Liberal rival, a seat which he held for decades, which many saw as putting his role as leader of the party in jeopardy.
Kurek has represented the riding since 2019 and said about his decision, “It has been a tremendous honor to serve the good people of Battle River—Crowfoot.”
“After much discussion with my wife Danielle, I have decided to step aside for this Parliamentary session to allow our Conservative Party Leader to run here in a by-election,” he added.
Newly elected Prime Minister of Canada Mark Carney used his first post-election press conference to say his government will unleash a “new economy” that will further “deepen” the nation’s ties to the world.
He also promised that he would “trigger” a by-election at once, saying there would be “no games” trying to prohibit Poilievre to run and win a seat in a safe Conservative riding.
Poilievre, in a statement posted to X Friday, said that it was with “humility and appreciation that I have accepted Damien Kurek’s offer to resign his seat in Battle River-Crowfoot so that I can work to earn the support of citizens there to serve them in Parliament.”
“Damien’s selfless act to step aside temporarily as a Member of Parliament shows his commitment to change and restoring Canada’s promise,” he noted.
“I will work to earn the trust of the good people of Battle River-Crowfoot and I will continue to hold the Liberal minority government to account until the next federal election, when we will bring real change to all Canadians.”
Carney said a new cabinet will be sworn in on May 12.
From the Canadian Energy Centre
By Will Gibson
Alberta oil sands projects poised to grow on lower costs, strong reserves
As geopolitical uncertainty ripples through global energy markets, a new report says Alberta’s oil sands sector is positioned to grow thanks to its lower costs.
Enverus Intelligence Research’s annual Oil Sands Play Fundamentals forecasts producers will boost output by 400,000 barrels per day (bbls/d) by the end of this decade through expansions of current operations.
“Existing oil sands projects deliver some of the lowest-breakeven oil in North America at WTI prices lower than $50 U.S. dollars,” said Trevor Rix, a director with the Calgary-based research firm, a subsidiary of Enverus which is headquartered in Texas with operations in Europe and Asia.
Alberta’s oil sands currently produce about 3.4 million bbls/d. Individual companies have disclosed combined proven reserves of about 30 billion barrels, or more than 20 years of current production.
A recent sector-wide reserves analysis by McDaniel & Associates found the oil sands holds about 167 billion barrels of reserves, compared to about 20 billion barrels in Texas.
While trade tensions and sustained oil price declines may marginally slow oil sands growth in the short term, most projects have already had significant capital invested and can withstand some volatility.
Cenovus Energy’s Christina Lake oil sands project. Photo courtesy Cenovus Energy
“While it takes a large amount of out-of-pocket capital to start an oil sands operation, they are very cost effective after that initial investment,” said veteran S&P Global analyst Kevin Birn.
“Optimization,” where companies tweak existing operations for more efficient output, has dominated oil sands growth for the past eight years, he said. These efforts have also resulted in lower cost structures.
“That’s largely shielded the oil sands from some of the inflationary costs we’ve seen in other upstream production,” Birn said.
Added pipeline capacity through expansion of the Trans Mountain system and Enbridge’s Mainline have added an incentive to expand production, Rix said.
The increased production will also spur growth in regions of western Canada, including the Montney and Duvernay, which Enverus analysts previously highlighted as increasingly crucial to meet rising worldwide energy demand.
“Increased oil sands production will see demand increase for condensate, which is used as diluent to ship bitumen by pipeline, which has positive implications for growth in drilling in liquids-rich regions such as the Montney and Duvernay,” Rix said.
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